Sweden's news in English

Editions:  Europe · Austria · Denmark · France · Germany · Italy · Norway · Spain · Sweden · Switzerland

Economic outlook brighter: report

Share this article

Economic outlook brighter: report
13:18 CEST+02:00
The Purchasing Managers' Index, which indicates Swedish industrial activity, climbed in April for the fourth consecutive month.

The PMI climbed to 38.8 in comparison with 36.7 in March and came in slightly above analyst expectations, according to the new report by Swedbank and Silf Competence, a provider of development services for purchasing, sourcing and supply professionals.

Order intake is the main contributory factor to the improvement in the figures which are interpreted to indicate a slowing of the economic downturn and raising hopes of a recovery.

"Order intake is the most important factor behind the increase, especially export order intake which is almost at 50. This means that it is not falling anywhere near as much as previously," Knut Hallberg at Swedbank said.

Production, delivery times and stock levels all contributed positively to April's PMI with employment levels constituting the only negative factor.

An increase in the index for company production plans indicates that pessimism is in retreat, but current levels still display expectations of falling production volumes over the coming half-year period, according to Swedbank/Silf.

The employment index continued to decline in April, which reflects the large wave of redundancies announced at the end of 2008 and beginning of 2009.

The PMI is based on interviews with more than 200 purchasing managers within the manufacturing industry. An index above 50 indicates growth within industry, a figure last seen in June 2008.

Get notified about breaking news on The Local

Share this article

The Local is not responsible for content posted by users.
Become a Member or sign-in to leave a comment.

From our sponsors

New Malmö museum will focus on ‘democracy and migration'

Change starts with one small step, whether it be a large or small scale project, it all requires movement. It's a logic that can be applied to starting a new national museum from scratch, especially one with an innovative theme that is going to take several years to come to fruition.